CRM Flashcards
part 2
What is CRM?
Customer Relationship Management: A strategy for managing an organisation’s
relationships and interactions with customers and potential customers
What is CRM software:
Customer Relationship Management (CRM) software:
▪ Helps companies to stay connected with customers, streamline processes, and
improve profitability. It uses data analysis about customers’ history with a
company to improve business relationships with customers, specifically
focusing on customer retention and ultimately driving sales growth
▪ Helps companies to efficiently gather customer information, capitalize on
customer buying behavior, and leverage technology investments by improving
the quality of sales and services
Why use CRM?
Intense competition to switch business
strategies from sales
-focused to customer
-
focused
* Customer loyalty and retention is a
competitive advantage costs ≈ 5x to attract new
customers
* Need to deliver an unforgettable customer
experience and top
-quality products
* The standard rule of business
– customer is
always right
* The power of customer
– Social media has
given power to customers to voice their
complaints directly to millions of people
What are the benefits of CRM?
Easy access to customer data: A CRM system includes a searchable database that
allows users to access clients’ & prospect information during meetings. Some
solutions also let users sync information across multiple devices, offering them
accessto the most up-to-date information on customers from anywhere
* Streamlined processes through automation: CRM software lets users standardize
different workflows and processes associated with sales, marketing, and
customer support to increase coordination between these teams
* Actionable insights on business performance and customer behaviour: Vendors
of some CRM tools offer analytics functionality, which allows users to create
customizable dashboards and reports based on customer data. These reports help
in segmenting customers, tracking revenue, and managing personalized
campaigns
SEA
What are gartners 8 buiilding blocks of CRM
What are the types of CRM?
Operational CRM: Business processes that
support interaction between the customer and
the company. Support customer acquisition &
retention
* Collaborative CRM: Streamlines business processes
& communications between departments to
improve customer experience
* Strategic CRM: Supports long-term customer
engagements, retention and loyalty
* Analytical CRM: Analyse information captured by operational CRM. Supports
customer data analysis to gain insights into their interactions with the business
What are the typical features of CRM software?
Contact management: Create a searchable database of customer and prospect
information
* Track interactions: Document conversations with customers and prospects on
different channels such as phone, email, live chat, or in-person
* Lead management: Track and manage leads throughout the customer lifecycle.
This involveslead capture, storage, distribution, nurture, segmentation, and
pipeline management.
* Calendar/reminder system: Create reminders about calls or meetings and
synchronize these with the user’s calendar. A user can also set reminders via desktop
notifications, calendar notifications, emails, or text messages.
* Documentstorage: Store,share, and manage documentation and paperwork
* Segmentation: Divide the customer base into groups based on attributes like age,
gender, location, and preferences to create targeted sales and marketing campaigns
What is social business and what are the three core tenants?
Social business: A business that embraces networks of people to create business
value. Premised on 3 core tenets:
– Engaged: connects people to expertise
– Transparent: embraces tools and models that support capturing knowledge from
different sources (inside & outside the company)
– Nimble: Agility in leveraging social networks to speed up business and gain real-time
insight to make quicker and better decisions
What is social commerece
Social commerce
– Using Web 2.0 social media technologies to support online interactions and user
contributions to assist in the acquisition of products and services
– The delivery of e-commerce activities and transactions via social media platforms,
mostly in social networks, using Web 2.0 software
– Subset of e-commerce that involves using social media to assist in e-commerce
transactions and activities
What are the drivers of social commerece
Drivers of social commerce
– Rise in the adoption ofsocial networking sites/ social media applications
– Customers expect more from companies
– Customers are looking for more customized, informative and engaging
services and shopping experiences
– Social commerce provides companies with opportunitiesto
strengthen relationships with customers
What are social business approaches?
Social networking sites add commercial features: E.g. Facebook, LinkedIn, and
several other social networking websites open their application programming
interfaces to allow commercial activities to be easily conducted among members
2. Traditional e-commerce websites add
social networking capabilities to take
advantage of the power of social
networking….Allows B2C websites to
understand and serve their customers
better
What are the benefits of social commerece
Deeper customerrelationships
* Enables businessesto reach global and distant
customers and build good relationships with them
* Drive operational efficiencies and workforce
optimization
social CRM?
A CRM process that provides communication through social media sites,
e.g., Facebook and X (Rouse, 2010)
* Integration of social media channels into CRM platforms
* A strategy that allows an organization to make customers a focal point of
how it does business, where the customers are a key force behind the
development of the ideas, services and products that the organization
produces
sOCIAL COMMERECE CHALLENGES
Companiesface challengesin showing the value of social business:
– Measuring ROI
– Social media platforms vs online marketplaces
– Linking social activitiesto business outcomes
– Developing a social media strategy
– Limited resources
– Keeping up with ever-changing social networks
– Integrating the varioussocial networking tools
Tradiotional VS social CRM
Traditional CRM Social CRM
Marketing Marketing is about direct advertising to boost
sales. Communication is driven by the company
Consumers are in control. Consumers engage with
each other in conversations about a business.
Businesses can attract potential customers through
their interactions with consumers
Sales Sales are driven by collecting & analyzing
customer data to create specific sales strategies
that focus on a target audience. The idea is to
keep getting them back for more
Not a direct pathway to customers. It is about
interaction with potential customers
Service Customer service operated within the hours &
channels directed by a company
Customers direct the channel of communication &
expect the company to respond to their
concerns/queries posted on social media networks
IT &
Support
Companies directly contact customers to get
their feedback. Customers may share their
experiences about products through WOM to
smaller circles
Customers share their experiences about products
online through eWOM to other users. 77% of users
feel positive towards brands that respond to their
twee
